Samsung Electronics and SK Hynix, a South Korean memory chipmaker, face investor calls for bigger dividends and buybacks after reporting record profits driven by AI demand while giving limited detail on capital returns.

LSEG data and calculations showed the two companies are set to hold a combined US$263 billion in net cash by the end of 2026, more than double Nvidia’s estimated US$102 billion.

Both companies currently target shareholder returns equal to half of free cash flow.

Both companies already have formal return frameworks.

SK hynix is maintaining a 2025-2027 shareholder return policy, and Samsung outlines shareholder returns on its investor site.

Their caution comes as Seoul’s value-up drive seeks to address the Korea discount, the tendency for South Korean companies to trade at lower valuations than global peers, by pushing listed firms to improve capital efficiency and investor engagement.

🔗 Source: Reuters

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